RM Secured Direct Lending PLC focused on existing portfolio during coronavirus

We remain confident in our investment manager’s approach in ensuring the portfolio is well balanced and set to deliver sustainable income and returns for shareholders

Norman Crighton, chairman

What  does

PLC () is a UK-based closed-ended investment trust focused on secured debt.  

The company aims to generate attractive and regular dividends through loans sourced or originated by its asset management arm, RM Capital Markets Limited, with a degree of inflation protection through index-linked returns where appropriate.

The loans the company invests in are mainly secured against such assets as real estate, plant and machine or income streams like account receivables.

What it owns

The group owns RM Capital Markets Limited, which provides advisory, capital raising and risk management services, a direct lending platform, and currency and fixed income trading services.

Within RM Capital Markets is credit asset management business, RM Funds, a fixed-income specialist with a focus on secured lending and debt investments.

has the VT RM Alternative Income Fund, which invests primarily in listed equities within the alternative income sector, including real estate investment trusts and other trusts in areas such as asset lending, direct lending, peer-to-peer lending, infrastructure debt and equity, property, structured credit investments and renewables.

How it is doing

In January,  RM Secured Direct said it had received an increased allocation from the British Business Bank under the Coronavirus Business Interruption Loan Scheme (CBILS).

The investment trust said its debt fund was initially granted an allocation of HM Government Guarantee capacity in August 2020 which has now been fully deployed into businesses in RM Funds’ focus areas, representing around 11% of the company’s net asset value (NAV) as at December 31, 2020.

RM added it has funded four loans via the CBILS including a two tranche senior secured loan to support the development of a high quality 72-bed purpose-built care home as well as another senior secured loan to a business specialising in providing retrofit energy efficiency measures.

What the boss says: James Robson, chief investment officer

“Overall, the Investment Management team believe that despite the recent market volatility the portfolio is well-positioned to continue to deliver the stable returns which investors are seeking and in addition, there will be greater NAV growth as we target a return to the opening NAV.”

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Inflexion points 

• Stability returns to secured lending market
• Dividend payments maintained
• UK economy starts to recover as lockdown restrictions ease